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As your Chicagoland real estate agent Michael LaFido, I want to be your resource for all things real estate. Whether you are buying, selling, or investing in real estate, I am here to guide you through the process. Subscribe to this blog to learn all of the latest news from our local market and receive expert tips for buying or selling a home.

What Can You Expect to See in the Chicagoland Market in 2014?

Happy New Year! To ring in the New Year, I wanted to share with you projections for the 2014 Chicagoland real estate market. In Chicagoland last year, home prices rose 4.3% versus 2012. This put us ahead of 14 states! As for interest rates in 2014, they are expected to rise 1%. Right now, the current rate is 4.3% and with the 1% bump to 5.3%, it would raise the monthly payment on your $250,000 mortgage by $161.08. In other words, don’t wait any longer and buy now! Rates are at historic lows and although 5.3% is a great rate, it will cost you more in the end.

The next thing I want to share with you is appreciation. Before the burst of the housing bubble, appreciation was rising at about 3.6% and during the “great times,” home prices were rising at around 7.9%. When the buddle burst, appreciation dropped 5.9%. Over the next four years, appreciation is expected to rise 4.2% nationally. This good news as we are going to appreciating steadily.

As for investments, what do you get back on your real estate investments? Historically, real estate out-polls the Dow, NASDAQ and the S&P. Since January 2000, real estate has brought back 65.7% return on investments. When you compare it to other investments, real estate is 18.7% better than the Dow, 36.2% better than the S&P and 63.7% better than the NASDAQ (graphic provided by Case-Shiller and MSN Money). Real estate will still bring you the best return on your investment in the both short and long term.

If you’re looking to buy, buy now when interest rates are still low and you will get a great return on your investment in the next four years. If you’re looking to sell, it comes down to supply and demand which we will discuss at another time. Also for sellers, how will interest rates affect the number of buyers that will qualify for your home based on debt-to-income ratio? As rates rise, the number of buyers will be limited for a higher loan amount. With all this being said, things are looking up for the Chicagoland market for 2014.

4 comments
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Expect something but not that too much expectations. We have to make sure that we do our best to keep our real estate business safe. We have to discover different things for our business to ensure our success.

Always act as fast as possible to not let any uncertain things to get worst. That way, we can protect our property investment and be able to figure things out immediately. That is the right thing to do as the handler of this business and also as an agent.